Correlation Between KT Hitel and Chorokbaem Healthcare
Can any of the company-specific risk be diversified away by investing in both KT Hitel and Chorokbaem Healthcare at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining KT Hitel and Chorokbaem Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KT Hitel and Chorokbaem Healthcare Co, you can compare the effects of market volatilities on KT Hitel and Chorokbaem Healthcare and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in KT Hitel with a short position of Chorokbaem Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT Hitel and Chorokbaem Healthcare.
Diversification Opportunities for KT Hitel and Chorokbaem Healthcare
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between 036030 and Chorokbaem is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding KT Hitel and Chorokbaem Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chorokbaem Healthcare and KT Hitel is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on KT Hitel are associated (or correlated) with Chorokbaem Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chorokbaem Healthcare has no effect on the direction of KT Hitel i.e., KT Hitel and Chorokbaem Healthcare go up and down completely randomly.
Pair Corralation between KT Hitel and Chorokbaem Healthcare
Assuming the 90 days trading horizon KT Hitel is expected to generate 1.31 times more return on investment than Chorokbaem Healthcare. However, KT Hitel is 1.31 times more volatile than Chorokbaem Healthcare Co. It trades about -0.08 of its potential returns per unit of risk. Chorokbaem Healthcare Co is currently generating about -0.26 per unit of risk. If you would invest 519,000 in KT Hitel on September 2, 2024 and sell it today you would lose (142,500) from holding KT Hitel or give up 27.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KT Hitel vs. Chorokbaem Healthcare Co
Performance |
| Timeline |
| KT Hitel |
| Chorokbaem Healthcare |
KT Hitel and Chorokbaem Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KT Hitel and Chorokbaem Healthcare
The main advantage of trading using opposite KT Hitel and Chorokbaem Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT Hitel position performs unexpectedly, Chorokbaem Healthcare can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Chorokbaem Healthcare will offset losses from the drop in Chorokbaem Healthcare's long position.| KT Hitel vs. Samsung Electronics Co | KT Hitel vs. Samsung Electronics Co | KT Hitel vs. LG Energy Solution | KT Hitel vs. SK Hynix |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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